Question 1;The implementation of TQM can not succeed unless:Answer;the company is willing to undergo immediate radical transformation of all of its processes.;the company has extensive market research on its markets, competitors, and customers.;it is fully supported by upper management and has the involvement of the CEO.;the lowest level of employees is willing to implement the program from the very beginning.;2 points;Question 2;discounts give customers an incentive to pay for merchandise promptly.Answer;Trade;Quantity;Cash;Cumulative;2 points;Question 3;is the right to ownership of property and, for a small business owner, determines who has responsibility for ownership.Answer;Identification;Risk of loss;Concept of title;F.O.B.;2 points;Question 4;Holding or carrying costs include the costs of:Answer;ordering materials and inventory.;receiving and inspecting items and all administrative costs.;insurance, taxes, depreciation, etc.;processing a purchase order.;2 points;Question 5;In order to constantly improve the system of production and service, managers must focus the entire company on;Answer;the product.;customer satisfaction.;the manufacturing process.;the purchasing process.;2 points;Question 6;F.O.B. buyer" means that:Answer;title passes to the buyer when the seller delivers the goods to the shipper.;risk of loss passes to the buyer when the seller delivers the goods to the buyer's place of business.;the buyer pays all shipping and transportation costs.;both title and risk of loss pass to the buyer immediately upon payment of the contract regardless of location of the goods.;2 points;Question 7;F.O.B. seller" means that:Answer;title passes to the buyer when the seller delivers the goods to the buyer.;risk of loss transfers to the buyer when the seller delivers the goods to the carrier.;the seller pays all shipping and transportation costs.;the buyer has both title and risk of loss as soon as the goods are paid for, regardless of their physical location.;2 points;Question 8;The basic reorder point model assumes that:Answer;the firm's inventory usage rate is constant.;the lead time varies.;safety stock is set at 5%.;the demand pattern is constant.;2 points;Question 9;is one of the elements of the total inventory costs.Answer;Demand;Set-up costs;Standing costs;Safety stock;2 points;Question 10;The first step in developing a vendor certification process is to:Answer;develop a grading scale for vendors.;identify the most important criteria.;create a list of vendors to be evaluated.;weight the criteria used to evaluate the vendors.;2 points;Question 11;When shopping for a vendor, a small business owner should seek:Answer;the best transfer of risk possible.;the lowest price.;the best price at acceptable quality.;to change vendors often in order to get the lowest price.;2 points;Question 12;The responsibility for verifying the identity and condition of merchandise:Answer;is the seller's.;is the carrier's.;depends on the nature of the contract between buyer and seller.;is the buyer's.;2 points;Question 13;Many small businesses build a(n) ________, or cushion, into their inventories in case demand runs ahead of the anticipated usage rate.Answer;safety stock;lead time;EOQ;stockout point;2 points;Question 14;discounts are normally set up on a graduated scale and are based on a firm's position in the channel of distribution and on the functions it performs in that channel.Answer;Trade;Quantity;Cash;Cumulative;2 points;Question 15;Deming's 14 Points include:Answer;awarding business to suppliers on the basis of the best price.;correcting defects at the end of the production process.;establishing production quotas.;adopting a total quality philosophy.;2 points;Question 16;A form of inventory management used in manufacturing that stresses a harmonious relationship with suppliers is:Answer;CRM.;TQM.;Efficient Consumer Response.;JIT II.;2 points;Question 17;The purpose of ABC inventory analysis is:Answer;to help retail stores control their inventories to prevent shoplifting and employee theft.;to save time by only inventorying those items that produce the majority of a firm's sales.;to focus inventory control efforts on items that account for the majority of sales.;a system to facilitate the computerization of a firm's perpetual inventory system.;2 points;Question 18;For most retailers and wholesalers, the investment in ________ is the largest capital outlay next to payroll.Answer;office equipment, computers, etc.;vehicles, automobiles and trucks;inventory;taxes and licensing fees;2 points;Question 19;The two-bin system and the tag system of inventory control are best suited for items classified as ________ in ABC analysis.Answer;A" items;perishable items;C" items;B" items;2 points;Question 20;In ABC analysis, the dollar usage value of an item is determined by:Answer;its price per unit times its shrinkage rate.;a statistical application of the 80/20 rule.;POS systems.;its cost per unit and its sales volume.;2 points;Question 21;A retail version of Just-In-Time inventory control is called:Answer;EDI;TQM.;Efficient Consumer Response.;JIT II.;2 points;Question 22;system enables business owners to track their inventories and to place orders with vendors quickly and with few errors by linking them to their vendors electronically.Answer;Electronic Data Processing (EDP);Electronic Fund Processing (EFP);Electronic Data Interchange (EDI);Enterprise Resource Planning (ERP);2 points;Question 23;Just-In-Time" inventory control techniques are most successful in what type of environment?Answer;Repetitive manufacturing operations where inventory levels are significant at the outset;Where product requirements are customized for each customer;Where a company changes suppliers regularly and those suppliers are independent of the manufacturer;Where inventory levels have been reduced to safety stock levels;2 points;Question 24;Typically, the small business owner's response to slow-moving inventory is to:Answer;hold a one-day sale.;mark it down to move it out and put the cash generated into fresh inventory.;set up bargain tables or place it in a middle-of-the-aisle display.;postpone marking it down until it's too late.;2 points;Question 25;A ________ inventory control system is best suited for controlling merchandise classified as "B" items.Answer;partial;perpetual;visual;periodic;2 points;Question 26;The inventory turnover ratio is computed by:Answer;dividing the firm's cost of goods sold by its average inventory.;dividing average inventory by firm's cost of goods sold.;dividing the firm's revenue by its average inventory.;dividing all costs by its average inventory.;2 points;Question 27;The ultimate goal for every business is to drive the inventory to ________.Answer;zero;below average;average;above average;2 points;Question 28;JIT systems need two significant human elements to be successful: mutual trust and teamwork, and:Answer;an individual incentive/rewards program.;staff training.;a benefits program.;empowerment.;2 points;Question 29;The most common method of liquidating slow-moving merchandise is:Answer;a markdown.;the one-day only sale.;quantity discounts for volume purchases.;an advertising blitz.;2 points;Question 30;A physical inventory count should be taken at least:Answer;once a week.;once a year.;every six months.;daily.
Paper#30967 | Written in 18-Jul-2015Price : $27